Kalyan Jewellers Share Price Jumps 15% After Strong Q3 FY26 Results

Kalyan Jewellers’ share price closed more than 15% higher today after the company reported a strong performance for Q3 FY26. The rally was driven by sharp growth in revenue, profit, and margins, along with healthy demand across India and international markets. Let’s break down what worked for the company in the December quarter.

Strong Q3 FY26 Financial Performance

Kalyan Jewellers delivered solid growth across key financial metrics in Q3 FY26 on a consolidated basis.

• Revenue for the quarter stood at ₹10,343.4 crore, up 42% compared to ₹7,278.1 crore in Q3 FY25. This growth was supported by strong same-store sales and new showroom additions.
• EBITDA rose sharply to ₹750.5 crore from ₹4,30.0 crore last year, registering a growth of 75%. EBITDA margin also improved to 7.3% from 5.9%, showing better operating efficiency.
• Profit after tax came in at ₹416.3 crore, a jump of 90% year-on-year from ₹218.7 crore in Q3 FY25. This strong profit growth was one of the key reasons behind the positive stock market reaction.

India Business Shows Robust Growth

• The India business continued to be the main growth driver for Kalyan Jewellers during the quarter.
• India revenue increased to ₹9,047.7 crore in Q3 FY26 from ₹6,386.4 crore in Q3 FY25, marking a 42% growth. This was driven by strong same-store sales growth of around 27% and steady customer additions.
• India EBITDA rose 77% year-on-year to ₹653.8 crore, while profit after tax grew 84% to ₹400.8 crore. EBITDA margin expanded to 7.2% from 5.8% last year, supported by better product mix, operating leverage, and a higher share of franchise-led revenue.

Non-South Markets and Studded Jewellery Gain Share

Kalyan Jewellers saw strong traction outside South India during Q3 FY26.

Non-South India contributed about 58.5% of total India revenue for the quarter. Same-store sales growth stood at 29% in non-South markets, compared to 25% in South India.

The share of studded jewellery also improved to around 31.2% from 29.5% a year ago. This helped improve margins, as studded jewellery typically carries better profitability than plain gold jewellery.

Middle East Business Remains Steady

The Middle East business also reported healthy growth despite volatile gold prices.

Revenue from the Middle East increased 28% year-on-year to ₹1,072.6 crore in Q3 FY26. Profit after tax rose 54% to ₹23.6 crore, supported by stable demand and same-store sales growth of around 24%. However, margins were slightly lower due to a higher share of franchise-operated stores, which is part of the company’s asset-light expansion strategy.

Why the Stock Reacted Positively

• Strong and broad-based revenue growth: Consolidated revenue grew 42% year-on-year in Q3 FY26, driven by healthy same-store sales growth and steady showroom additions. This shows demand strength rather than one-off growth.
• Sharp improvement in profitability: Profit after tax jumped 90% year-on-year, supported by operating leverage, better cost control, and improving margins. This signals that growth is now translating into higher earnings quality.
• Rising share of studded jewellery: Studded jewellery contribution increased to around 31.2% from 29.5% last year. This matters because studded jewellery carries higher margins than plain gold, helping improve overall profitability.
• Non-South markets driving expansion: Non-South India contributed nearly 58.5% of total India revenue, with same-store sales growth of 29%, higher than South India. This shows Kalyan is successfully scaling beyond its traditional stronghold.
• Asset-light franchise model gaining scale: Around half of India revenue now comes from franchise-led showrooms. This reduces capital requirements, improves return ratios, and lowers balance sheet risk over time.
• Clear execution visibility: Consistent growth across regions, better product mix, and improving margins together signal a structurally stronger business, which boosted investor confidence and led to the stock’s sharp up-move.

Bottom Line

Kalyan Jewellers’ Q3 FY26 performance shows that the company is scaling up profitably while expanding its footprint across India and overseas. Strong demand, better margins, and disciplined execution have clearly reflected in both financial results and the stock price movement. As always, investors should track consistency in performance and broader market conditions before making investment decisions.

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